ERP stands for Enterprise Resource Planning

What is the simplest ERP definition?

Think about all the core processes needed to run a company: finance, HR, manufacturing, supply chain, services, procurement, and others. At its most basic level, ERP integrates these processes into a single system.

But new ERP systems are anything but basic. They use the latest technologies – such as machine learning and AI – to provide intelligence, visibility, and efficiency across every aspect of a business.

How a next-generation ERP system works

See how new ERP uses digital assistants to help you focus on what matters, artificial intelligence (AI) and machine learning to automate processes, and predictive analytics to support real-time decision making.

ERP software - Finance module

ERP software – sourcing and procurement module

ERP software – sales module

ERP software – manufacturing and supply chain module

Each application (aka ERP module) typically focuses on one business area. You can combine different modules to meet your needs. Finance, human resources, sales, and logistics are popular starting points. There are also modules specific to industries – from manufacturing to retail.

5 signs you’re ready for an ERP system

1. You’re spending more time on daily activities

If it’s taking longer to manage key activities, like closing the books, too many disparate applications may be to blame. ERP software integrates solutions and data into one system with a common interface, making it easier for business units to communicate and do their jobs effectively.

2. You have many unanswered business questions

Can you easily answer important questions about your business – such as revenue per product line or number of returns? If not, segregated systems and a lack of access to metrics and KPIs may be holding you back. Enterprise resource planning software is designed to address these challenges.

3. You have runaway business processes

Are there areas where your processes are getting away from you? Maybe it’s harder for you to manage inventory, satisfy customers, or keep costs in check. If so, your business processes may need to be restructured to accommodate growth or changing priorities – a natural fit for ERP software.

4. You have manual processes with multiple data sets

Are most of your departments using their own applications and processes to get things done? If so, chances are you’re spending too much time on duplicate data entry. When information can’t flow between systems, reporting takes longer, errors happen often, and decision making is hampered.

5. You’re missing out on fast-moving opportunities

Are you spending so much time running your business that you can’t pursue exciting new opportunities? Newer ERP systems include advanced, intelligent capabilities, like machine learning and predictive analytics, that make it easier to identify and capitalize on profitable new ventures.

ERP at any size: What are my options?

ERP isn’t just for global enterprises. At SAP, we offer ERP solutions for businesses of all sizes – small, midsize, and large. We also provide industry and company-specific functionality to meet unique business needs.

Small Business ERP

Do you have 250 employees or fewer? Our ERP software for small business can help you move beyond spreadsheets and efficiently manage every aspect of your growing company – from sales and customer relationships to financials and operations.